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Bill C-28

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	87. (1) The definition ``tax shelter'' in subsection 237.1(1) of the Act is replaced by the following:
``tax shelter'' « abri fiscal »	``tax shelter'' means
	(a) a gifting arrangement described by paragraph (b) of the definition ``gifting arrangement''; and
	(b) a gifting arrangement described by paragraph (a) of the definition ``gifting arrangement'', or a property (including any right to income) other than a flow-through share or a prescribed property, in respect of which it can reasonably be considered, having regard to statements or representations made or proposed to be made in connection with the gifting arrangement or the property, that, if a person were to enter into the gifting arrangement or acquire an interest in the property, at the end of a particular taxation year that ends within four years after the day on which the gifting arrangement is entered into or the interest is acquired,
	(i) the total of all amounts each of which is
	(A) an amount, or a loss in the case of a partnership interest, represented to be deductible in computing the person's income for the particular year or any preceding taxation year in respect of the gifting arrangement or the interest in the property (including, if the property is a right to income, an amount or loss in respect of that right that is stated or represented to be so deductible), or
	(B) any other amount stated or represented to be deemed under this Act to be paid on account of the person's tax payable, or to be deductible in computing the person's income, taxable income or tax payable under this Act, for the particular year or any preceding taxation year in respect of the gifting arrangement or the interest in the property, other than an amount so stated or represented that is included in computing a loss described in clause (A),
	would equal or exceed
	(ii) the amount, if any, by which
	(A) the cost to the person of the property acquired under the gifting arrangement, or of the interest in the property at the end of the particular year, determined without reference to section 143.2,
	would exceed
	(B) the total of all amounts each of which is the amount of any prescribed benefit that is expected to be received or enjoyed, directly or indirectly, in respect of the property acquired under the gifting arrangement, or of the interest in the property, by the person or another person with whom the person does not deal at arm's length.
	(2) Subsection 237.1(1) of the Act is amended by adding the following in alphabetical order:
``gifting arrangement'' « arrangemen t de don »	``gifting arrangement'' means any arrangement under which it may reasonably be considered, having regard to statements or representations made or proposed to be made in connection with the arrangement, that if a person were to enter into the arrangement, the person would
	(a) make a gift to a qualified donee, or a contribution referred to in subsection 127(4.1), of property acquired by the person under the arrangement; or
	(b) incur a limited-recourse amount that can reasonably be considered to relate to a gift to a qualified donee or a contribution referred to in subsection 127(4.1).
	(3) The portion of the definition ``tax shelter'' in subsection 237.1(1) of the Act before paragraph (a), as enacted by subsection (1), and the portion of the definition ``gifting arrangement'' in subsection 237.1(1) of the Act before paragraph (a), as enacted by subsection (2), apply after February 18, 2003.
	(4) Paragraph (a) of the definition ``tax shelter'' in subsection 237.1(1) of the Act, as enacted by subsection (1), and paragraph (b) of the definition ``gifting arrangement'' in subsection 237.1(1) of the Act, as enacted by subsection (2) apply in respect of property acquired, and gifts, contributions, statements and representations made, after February 18, 2003.
	(5) Paragraph (b) of the definition ``tax shelter'' in subsection 237.1(1) of the Act, as enacted by subsection (1), and paragraph (a) of the definition ``gifting arrangement'' in subsection 237.1(1) of the Act, as enacted by subsection (2), apply in respect of property acquired, and statements and representations made, after February 18, 2003.
	88. (1) The definition ``automobile'' in subsection 248(1) of the French version of the Act is amended by adding the following after paragraph (a):
	a.1) les véhicules d'intervention d'urgence clairement identifiés qui sont utilisés dans le cadre de la charge ou de l'emploi d'un particulier au sein d'un service des incendies ou de la police;
	(2) The definition ``automobile'' in subsection 248(1) of the English version of the Act is amended by adding the following after paragraph (b):
	(b.1) a clearly marked emergency-response vehicle that is used in connection with or in the course of an individual's office or employment with a fire department or the police;
	(3) Paragraph (d) of the definition ``automobile'' in subsection 248(1) of the French version of the Act is replaced by the following:
	d) les véhicules à moteur suivants :
	(i) les véhicules de type fourgonnette ou camionnette, ou d'un type analogue, comptant au maximum trois places assises, y compris celle du conducteur, et qui, au cours de l'année d'imposition où ils sont acquis ou loués, sont utilisés principalement pour le transport de marchandises ou de matériel en vue de gagner un revenu,
	(ii) les véhicules de type fourgonnette ou camionnette, ou d'un type analogue, dont la totalité ou la presque totalité de l'utilisation au cours de l'année d'imposition où ils sont acquis ou loués est pour le transport de marchandises, de matériel ou de passagers en vue de gagner un revenu,
	(iii) les véhicules de type camionnette qui sont utilisés, au cours de l'année d'imposition où ils sont acquis ou loués, principalement pour le transport de marchandises, de matériel ou de passagers en vue de gagner un revenu à un ou plusieurs endroits au Canada qui sont, à la fois :
	(A) visés, pour ce qui est d'un ou de plusieurs des occupants du véhicule, aux sous-alinéas 6(6)a)(i) ou (ii),
	(B) situés à au moins 30 kilomètres du point le plus rapproché de la limite de la plus proche région urbaine, au sens du dernier dictionnaire du recensement publié par Statistique Canada avant l'année en question, qui compte une population d'au moins 40 000 personnes selon le dernier recensement publié par Statistique Canada avant cette même année.
	(4) Paragraph (e) of the definition ``automobile'' in subsection 248(1) of the English version of the Act is replaced by the following:
	(e) a motor vehicle
	(i) of a type commonly called a van or pick-up truck, or a similar vehicle, that has a seating capacity for not more than the driver and two passengers and that, in the taxation year in which it is acquired or leased, is used primarily for the transportation of goods or equipment in the course of gaining or producing income,
	(ii) of a type commonly called a van or pick-up truck, or a similar vehicle, the use of which, in the taxation year in which it is acquired or leased, is all or substantially all for the transportation of goods, equipment or passengers in the course of gaining or producing income, or
	(iii) of a type commonly called a pick-up truck that is used in the taxation year in which it is acquired or leased primarily for the transportation of goods, equipment or passengers in the course of earning or producing income at one or more locations in Canada that are
	(A) described, in respect of any of the occupants of the vehicle, in subparagraph 6(6)(a)(i) or (ii), and
	(B) at least 30 kilometres outside the nearest point on the boundary of the nearest urban area, as defined by the last census dictionary published by Statistics Canada before the year, that has a population of at least 40,000 individuals as determined in the last census published by Statistics Canada before the year.
	(5) Subsection 248(1) of the Act is amended by adding the following in alphabetical order:
``limited-reco urse amount'' « montant à recours limité »	``limited-recourse amount'' means an amount that is a limited-recourse amount under section 143.2.
	(6) Subsections (1) and (2) apply to the 2003 and subsequent taxation years.
	(7) Subsections (3) and (4) apply to taxation years that begin after 2002.
	(8) Subsection (5) applies after February 18, 2003.
	89. (1) Subsection 252(3) of the Act is replaced by the following:
Extended meaning of ``spouse'' and ``former spouse''	(3) For the purposes of paragraph 56(1)(b), section 56.1, paragraphs 60(b) and (j), section 60.1, subsections 70(6) and (6.1), 73(1) and (5) and 104(4), (5.1) and (5.4), the definition ``pre-1972 spousal trust'' in subsection 108(1), subsection 146(16), subparagraph 146.3(2)(f)(iv), subsections 146.3(14), 147(19), 147.3(5) and (7) and 148(8.1) and (8.2), the definition ``small business property'' in subsection 206(1), subparagraph 210(c)(ii) and subsections 248(22) and (23), ``spouse'' and ``former spouse'' of a particular individual include another individual of the opposite sex who is a party to a voidable or void marriage with the particular individual.
	(2) Subsection (1) applies after 2003.
1992, c. 48, Sch.	Children's Special Allowances Act
	90. (1) Subsection 8(1) of the Children's Special Allowances Act is amended by striking out the word ``and'' at the end of paragraph (a), by adding the word ``and'' at the end of paragraph (b) and by adding the following after paragraph (b):
	(c) if an amount may be deducted under section 118.3 of that Act in respect of the child, the amount expressed in dollars in the description of N in subsection 122.61(1) of that Act,
	(2) Subsection (1) applies in respect of special allowances payable for months that are after June 2003.
	PART 11
	AMENDMENTS RELATED TO STANDARDIZED ACCOUNTING
2002, c. 22	Excise Act, 2001
	*91. (1) Section 165 of the Excise Act, 2001* is replaced by the following:**
Amounts owing of $2 or less in total	165. (1) If the Minister determines, at any time, that the total of all amounts owing by a person to Her Majesty under this Act does not exceed two dollars, those amounts are deemed to be nil.
Amounts payable of $2 or less in total	(2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister shall apply those amounts against any amount owing, at that time, by the person to Her Majesty under this Act. However, if the person, at that time, does not owe any amount to Her Majesty, those amounts are deemed to be nil.
	(2) Subsection (1) comes into force or is deemed to have come into force on the earlier of the day on which Parts 3 and 4 of the Act come into force and the day on which this Act is assented to.
	92. (1) Subsections 170(3) to (5) of the Act are replaced by the following:
Period where interest not payable	(3) Despite any other provision of this Act, if the Minister notifies a person that the person is required to pay a specified amount under this Act and the person pays the specified amount in full before the end of the period that the Minister specifies with the notice, interest is not payable on the specified amount for the period.
Interest amounts of $25 or less	(4) If, at any time, a person pays an amount not less than the total of all amounts, other than interest, owing at that time to Her Majesty under this Act for a fiscal month and the total amount of interest payable by the person under this Act for that month is not more than $25.00, the Minister may cancel the interest.
	(2) Subsection (1) comes into force or is deemed to have come into force on the earlier of the day on which Parts 3 and 4 of the Act come into force and the day on which this Act is assented to.
	93. (1) Section 171 of the Act is replaced by the following:
Compound interest on amounts payable by Minister	171. Interest shall be compounded daily at the prescribed rate on any amount payable by the Minister to a person. The interest shall be computed for the period beginning on the first day after the day on which the amount is required to be paid and ending on the day on which the amount is paid or is applied against an amount owed by the person to Her Majesty, unless this Act provides otherwise.
	(2) Subsection (1) comes into force or is deemed to have come into force on the earlier of the day on which Parts 3 and 4 of the Act come into force and the day on which this Act is assented to.
R.S., c. E-15	Excise Tax Act
R.S., c. 7 (2nd Supp.), s. 3(1)	*94. (1) Subsection 7(1) of the Excise Tax Act* is replaced by the following:**
Penalty for default	7. (1) Every person who refuses or neglects to make a return as required by subsection 5(1) is liable to a penalty of five per cent of the amount of tax unpaid at the expiration of the time for filing the return.
	(2) Subsection (1) applies in respect of any period for which a return is required to be filed after June 2003.
	95. (1) Subsection 58.1(1) of the Act is amended by adding the following in alphabetical order:
``fiscal month'' « mois d'exercice »	``fiscal month'' means a fiscal month as determined under subsection 78(1);
``month'' « mois »	``month'' means a period beginning on a particular day in a calendar month and ending on
	(a) the day immediately before the day in the next calendar month that has the same calendar number as the particular day, or
	(b) if the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month;
	(2) Subsection (1) comes into force or is deemed to have come into force on July 1, 2003.
	96. Section 59 of the Act is amended by adding the following after subsection (3.3):
Effect	(3.4) A regulation made under this Act has effect from the day on which it is published in the Canada Gazette or at any later time that may be specified in the regulation, unless it provides otherwise and
	(a) has a relieving effect only;
	(b) corrects an ambiguous or deficient enactment that was not in accordance with the objects of this Act;
	(c) is consequential on an amendment to this Act that is applicable before the day on which the regulation is published in the Canada Gazette; or
	(d) gives effect to a budgetary or other public announcement, in which case the regulation shall not, unless paragraph (a), (b) or (c) applies, have effect before the day on which the announcement was made.
2002, c. 22, s. 428	97. (1) Subsection 68.5(7) of the Act is amended by adding the word ``and'' at the end of paragraph (a), by striking out the word ``and'' at the end of paragraph (b) and by repealing paragraph (c).
2002, c. 22, s. 428	(2) Paragraph 68.5(9)(b) of the Act is replaced by the following:
	(b) interest at the prescribed rate in respect of the excess rebate for the period beginning on the first day after the day on which the rebate is paid to the person and ending on the earlier of the day on which the excess rebate is paid to the Receiver General and the day on or before which the reconciliation report is required to be filed.
2002, c. 22, s. 428	(3) Subsections 68.5(11) to (13) of the Act are repealed.
2002, c. 22, s. 428	(4) Paragraph 68.5(14)(b) of the Act is replaced by the following:
	(b) paid all excess rebates in respect of rebate periods ending before that time and any interest that has accrued to that time.
	(5) Subsection (1) applies in respect of rebate periods ending after June 2003.

Bill C-28

Children's Special Allowances Act

PART 11

AMENDMENTS RELATED TO STANDARDIZED ACCOUNTING

Excise Act, 2001

Excise Tax Act